Uber Drivers, Riders Return as Lyft Struggles, but Concerns Grow Over Ridesharing

Uber reported an 18 percent jump in trips in its latest earnings report, but there are concerns about the ride-hailing business despite the positive news. Howard Yu, the LEGO professor of management and innovation at IMD Business School, joined Cheddar News to talk about the competition between the ride-hailing competitors Uber and Lyft in a more cautious market. “Fundamentally if you're thinking about Lyft or Uber, these are platform businesses, and so in platform businesses, there is always a natural monopoly," he said. "So if you're looking at ride-hailing, why do we have two competitors? Because investors in the past have been happy throwing money at them. That was a temporary moment, so going forward, it is worrisome, how can a limited market accommodate two giants at the same time?"
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